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Sidewinder Update: CVS (NYSE: CVS), Biogen Idec (NASDAQ: BIIB)

Yesterday morning,
CVS Caremark (NYSE: CVS )
announced earnings of 79 cents a share, which beat estimates by one
cent. The company's stock is currently down five cents to $32.67
per share, and it looks like an investor is betting that the stock
could remain relatively unchanged throughout the longer-term.
The January 2011 30-35 strangle crossed 5,000 times out of
the gate thanks to an investor who sold these spreads for
$5.08
. The investor is calling for volatility to come in and range-bound
movement in the stock.

Biogen Idec Inc. (NASDAQ: BIIB )
announced earnings of $1.20 per share this morning, which beat
estimates by 15 cents a share. The company also issued upside
guidance for the year, which sent the stock up 86 cents, or 1.6%,
to $53.70 during the first 30 minutes of trading. We saw heavy
strangle action out of the gate, as an investor
sold the March 50-55 strangle and simultaneously bought the
March 45-60 strangle 4,000 times
. The investor collected a net premium of $1.50 for the package,
also referred to as an iron condor.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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